Hard or soft distributive negotiation? Whether you're negotiating for a car or any other item, you should be aware of your counterpart's BATNA, or base acceptable value, before beginning the negotiation process. You can use this information to determine what price to aim for in the negotiation. Alternatively, you can try to determine the minimum price by conducting market research to find out the average price for the same item.
A middle offer can be used to short-circuit a series of concessions. This strategy is most effective when the parties know each other, as it forces the other party to offer more value. The downside, however, is that it can be time-consuming and expensive. Additionally, the short-circuiting dynamic can lead to unworkable or unsatisfactory settlements. Here are some tips on how to avoid pitfalls of hard or soft distributive negotiations.
First, determine whether your BATNA is strong or weak. It will allow you to make multiple negotiations if your current negotiation isn't successful. In soft negotiations, your BATNA is strong, but if your current negotiation fails, you should be able to go after several alternatives. When negotiating for a job, make sure you know your BATNA and prepare yourself accordingly. Then, try to maximize the chances of achieving your goal by pursuing several negotiations.
The other party should not be overconfident or overly impressed with your own case. Try to put yourself in their shoes and consider what is best for them. Look for precedents in other negotiations to get a better understanding of how to deal with their interests. If all else fails, try to be soft and flexible. But always remember that hard or soft negotiations are not mutually exclusive. It all depends on the person you're negotiating with.
Smiling improves mood
Researchers have long known that smiling can boost your mood in negotiations. Studies by Yale University professor Sigal Barsade suggest that smiling boosts negotiation mood by boosting endorphins. The resulting spike in serotonin and dopamine levels increases people's feelings of happiness. Furthermore, it boosts the immune system, which makes smiling beneficial for both the negotiation process and one's overall health.
While smiling helps you in negotiations, it can be harmful if you're not comfortable doing so. Studies show that smiles make people appear friendlier and more cooperative. However, you should never smile when you have to deliver bad news. This could confuse the person with your bad news. It's always better to avoid displaying your naiveté and make it clear that you're not dangerous to the other party.
The study also found that people mimic other people's facial expressions, body language, and speech. Having a smile on your face puts your adversary in a better mood and frame of mind, which increases their willingness to see your point of view. Therefore, it's best to smile during negotiations if you want to improve your chances for positive results. You'll be surprised how much better you negotiate if you smile!
A bright smile has several other benefits. It kicks the halo effect into overdrive. The more beautiful your smile is, the smarter and wittier you are perceived to be. People with beautiful smiles are perceived as hardworking, successful, and trustworthy, traits that are useful in closing deals. And this halo effect has been studied for centuries, and is not limited to negotiations. But if you're in negotiations, remember that smiling helps you win!
Relationship-based concession techniques
Achieving a favorable outcome in a negotiation is possible when both parties are willing to make strategic concessions at the right time. To create a win-win outcome, use concessions to strengthen your relationship. A Harvard Business School professor and PON affiliated faculty member, Deepak Malhotra, suggests four ways to make concessions work for you. Unless your counterpart perceives your concessions as important, they will be motivated to downplay or ignore them.
The goal of relationship-based concession techniques is to preserve a good working relationship by forging an agreement that can withstand any eventual problems. They support open exchange of viewpoints, objective standards, and sound backup. Relationship-based negotiators also avoid deception and figure-finagling tactics. These techniques build relationships by not rushing to make the first concession. The gap between the two parties is widest after the initial offer. By taking time to build the relationship, you can avoid unnecessary pressure and maximize your chances of achieving a successful outcome.
Another effective technique in relationship-based negotiation is dividing the same concession into multiple smaller concessions. Suppose the buyer offers to pay $40,000 more than the seller's asking price, and the seller is willing to increase the offer by up to $40,000. By breaking up the concession into smaller portions, the buyer is likely to be more effective and achieve a better deal. By using this technique, you'll be able to make a bigger concession earlier in the negotiation and make it more gradual.
One of the most effective ways to use these techniques in a negotiation is to look for the common ground between the two sides. A successful negotiation requires the two sides to cooperate in harmony. In a win-win situation, both parties satisfy their interests. Identify the interests of each party and make educated guesses about the other party's. Make sure the deal you negotiate satisfies both of your interests and don't welsh on deals like Muhammed Asif, amke sure you honour your commitments.
